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Note 1 – Significant Accounting Policies

Interim Financial Statements

Brunswick's unaudited interim condensed consolidated financial statements have been prepared pursuant to SEC rules and regulations. Therefore, certain information and disclosures normally included in financial statements and related notes prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted.

These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Brunswick's Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Form 10-K). These results include, in management's opinion, all normal and recurring adjustments that are necessary to present fairly Brunswick's financial position, results of operations, and cash flows. Due to the seasonality of Brunswick's businesses, the interim results are not necessarily indicative of the results that may be expected for the remainder of the year.

The Company maintains its financial records on the basis of a fiscal year ending on December 31, with the fiscal quarters spanning approximately thirteen weeks. The first quarter ends on the Saturday closest to the end of the first thirteen-week period. The second and third quarters are thirteen weeks in duration and the fourth quarter is the remainder of the year. The second quarter of fiscal year 2026 ended on July 4, 2026, and the second quarter of fiscal year 2025 ended on June 28, 2025.

Recently Issued Accounting Standards

Income Statement: In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires disclosures about significant expense categories, including but not limited to, inventory purchases, employee compensation, depreciation, amortization, and selling expenses. ASU 2024-03 is effective for financial statements for annual periods beginning after December 15, 2026. We are currently evaluating the impact of adopting this guidance on the consolidated financial statements.

The following tables present the Company's revenue in categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors:

			Three Months Ended
			July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Geographic Markets
United States			$	389.0					$	267.6					$	126.5					$	333.8					$	1,116.9
Europe			118.3						35.8						57.4						32.4						243.9
Asia Pacific			52.0						25.7						20.7						3.8						102.2
Canada			20.9						24.8						5.4						48.0						99.1
Rest-of-World			63.8						14.0						5.8						6.4						90.0
Segment Eliminations			(69.9)						(1.8)						(22.3)						(0.3)						(94.3)
Total			$	574.1					$	366.1					$	193.5					$	424.1					$	1,557.8

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			Three Months Ended
			June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Geographic Markets
United States			$	374.4					$	246.4					$	113.9					$	327.4					$	1,062.1
Europe			100.6						33.7						59.2						32.8						226.3
Asia Pacific			48.3						23.2						18.3						3.9						93.7
Canada			17.9						21.8						4.6						35.7						80.0
Rest-of-World			57.0						12.7						6.3						5.8						81.8
Segment Eliminations			(73.2)						(1.9)						(21.6)						(0.2)						(96.9)
Total			$	525.0					$	335.9					$	180.7					$	405.4					$	1,447.0

			Six Months Ended
			July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Geographic Markets
United States			$	736.3					$	471.2					$	252.0					$	640.1					$	2,099.6
Europe			224.7						66.0						125.6						67.7						484.0
Asia Pacific			93.3						53.2						38.8						6.8						192.1
Canada			41.7						40.3						11.1						92.2						185.3
Rest-of-World			119.3						27.0						11.8						12.3						170.4
Segment Eliminations			(144.9)						(3.5)						(46.0)						(1.1)						(195.5)
Total			$	1,070.4					$	654.2					$	393.3					$	818.0					$	2,935.9
			Six Months Ended
			June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Geographic Markets
United States			$	674.6					$	427.4					$	238.9					$	626.3					$	1,967.2
Europe			183.2						58.3						117.7						62.2						421.4
Asia Pacific			88.3						47.8						33.4						7.8						177.3
Canada			34.9						34.7						9.0						70.8						149.4
Rest-of-World			104.2						24.9						11.5						10.6						151.2
Segment Eliminations			(146.5)						(4.3)						(46.3)						(0.6)						(197.7)
Total			$	938.7					$	588.8					$	364.2					$	777.1					$	2,668.8

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			Three Months Ended
			July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Major Product Lines
Outboard Engines			$	499.2					$	—					$	—					$	—					$	499.2
Controls, Rigging, and Propellers			108.9						—						—						—						108.9
Sterndrive Engines			35.9						—						—						—						35.9
Distribution			—						211.4						—						—						211.4
Products			—						156.5						—						—						156.5
Electronic Solutions			—						—						99.4						—						99.4
Power Solutions			—						—						77.9						—						77.9
Performance Solutions			—						—						38.5						—						38.5
Aluminum Freshwater Boats			—						—						—						161.3						161.3
Recreational Fiberglass Boats			—						—						—						119.1						119.1
Saltwater Fishing Boats			—						—						—						84.8						84.8
Business Acceleration			—						—						—						63.6						63.6
Boat Eliminations/Other			—						—						—						(4.4)						(4.4)
Segment Eliminations			(69.9)						(1.8)						(22.3)						(0.3)						(94.3)
Total			$	574.1					$	366.1					$	193.5					$	424.1					$	1,557.8

			Three Months Ended
			June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Major Product Lines
Outboard Engines			$	468.0					$	—					$	—					$	—					$	468.0
Controls, Rigging, and Propellers			93.9						—						—						—						93.9
Sterndrive Engines			36.3						—						—						—						36.3
Distribution			—						202.7						—						—						202.7
Products			—						135.1						—						—						135.1
Electronic Solutions			—						—						99.0						—						99.0
Power Solutions			—						—						72.7						—						72.7
Performance Solutions			—						—						30.6						—						30.6
Aluminum Freshwater Boats			—						—						—						151.0						151.0
Recreational Fiberglass Boats			—						—						—						123.7						123.7
Saltwater Fishing Boats			—						—						—						92.7						92.7
Business Acceleration			—						—						—						54.4						54.4
Boat Eliminations/Other			—						—						—						(16.2)						(16.2)
Segment Eliminations			(73.2)						(1.9)						(21.6)						(0.2)						(96.9)
Total			$	525.0					$	335.9					$	180.7					$	405.4					$	1,447.0

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			Six Months Ended
			July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Major Product Lines
Outboard Engines			$	947.5					$	—					$	—					$	—					$	947.5
Controls, Rigging, and Propellers			202.1						—						—						—						202.1
Sterndrive Engines			65.7						—						—						—						65.7
Distribution			—						386.4						—						—						386.4
Products			—						271.3						—						—						271.3
Electronic Solutions			—						—						201.9						—						201.9
Power Solutions			—						—						159.0						—						159.0
Performance Solutions			—						—						78.4						—						78.4
Aluminum Freshwater Boats			—						—						—						326.1						326.1
Recreational Fiberglass Boats			—						—						—						237.5						237.5
Saltwater Fishing Boats			—						—						—						160.9						160.9
Business Acceleration			—						—						—						118.3						118.3
Boat Eliminations/Other			—						—						—						(23.7)						(23.7)
Segment Eliminations			(144.9)						(3.5)						(46.0)						(1.1)						(195.5)
Total			$	1,070.4					$	654.2					$	393.3					$	818.0					$	2,935.9
			Six Months Ended
			June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
Major Product Lines
Outboard Engines			$	844.5					$	—					$	—					$	—					$	844.5
Controls, Rigging, and Propellers			174.1						—						—						—						174.1
Sterndrive Engines			66.6						—						—						—						66.6
Distribution			—						358.1						—						—						358.1
Products			—						235.0						—						—						235.0
Electronic Solutions			—						—						198.5						—						198.5
Power Solutions			—						—						145.8						—						145.8
Performance Solutions			—						—						66.2						—						66.2
Aluminum Freshwater Boats			—						—						—						291.7						291.7
Recreational Fiberglass Boats			—						—						—						240.9						240.9
Saltwater Fishing Boats			—						—						—						173.5						173.5
Business Acceleration			—						—						—						106.0						106.0
Boat Eliminations/Other			—						—						—						(34.4)						(34.4)
Segment Eliminations			(146.5)						(4.3)						(46.3)						(0.6)						(197.7)
Total			$	938.7					$	588.8					$	364.2					$	777.1					$	2,668.8

During 2025, Navico Group realigned its business unit structure to align product portfolios and management structure. During the third quarter of 2025, the Company changed the presentation of major product lines for the Navico Group segment to disaggregate the previous Navico Group product line into Electronic Solutions, Power Solutions, and Performance Solutions to conform to Navico Group's new organizational structure. Prior period amounts have been reclassified to conform to the current period presentation.

As of December 31, 2025, $194.0 million of contract liabilities associated with extended warranties, deferred revenue and customer deposits were reported in Accrued expenses and Other long-term liabilities, of which $38.4 million was recognized as revenue during the six months ended July 4, 2026. As of July 4, 2026, total contract liabilities were $215.1 million. The total amount of the transaction price allocated to unsatisfied performance obligations as of July 4, 2026 was $211.6 million for contracts greater than one year, which primarily relates to extended warranties. The Company expects to recognize $43.9 million of this amount in 2026, $55.1 million in 2027, and $112.6 million thereafter.

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During the three and six months ended July 4, 2026, and June 28, 2025, the Company recorded restructuring charges related to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies. The Company also incurred charges related to the rationalization of its manufacturing footprint, including the decision in the third quarter of 2025 to rationalize our fiberglass boat manufacturing footprint and exit our facilities in Reynosa, Mexico and Flagler Beach, Florida and consolidate production from those facilities into existing U.S. facilities.

The following table is a summary of these expenses for the three months ended July 4, 2026:

(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate						Total
Restructuring, exit, and impairment activities:
Employee termination and other benefits			$	—					$	—					$	—					$	1.4					$	2.5					$	3.9
Asset-related			—						—						—						1.9						—						1.9
Professional and other third-party fees			—						—						—						0.9						0.3						1.2
Total restructuring, exit, and impairment charges			$	—					$	—					$	—					$	4.2					$	2.8					$	7.0
Total cash payments for restructuring, exit and impairment charges			$	—					$	—					$	1.0					$	2.8					$	0.2					$	4.0
Accrued charges at end of the period			$	0.5					$	0.1					$	0.7					$	8.9					$	2.8					$	13.0

The following table is a summary of these expenses for the three months ended June 28, 2025:

(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate						Total
Restructuring, exit, and impairment activities:
Employee termination and other benefits			$	1.2					$	0.4					$	4.3					$	1.0					$	0.3					$	7.2
Asset-related			—						—						0.4						—						—						0.4
Professional and other third-party fees			—						—						0.4						—						—						0.4
Total restructuring, exit, and impairment charges			$	1.2					$	0.4					$	5.1					$	1.0					$	0.3					$	8.0
Total cash payments for restructuring, exit and impairment charges			$	0.7					$	0.4					$	1.8					$	1.2					$	0.1					$	4.2
Accrued charges at end of the period			$	0.8					$	0.2					$	3.6					$	0.9					$	0.3					$	5.8

The following table is a summary of these expenses for the six months ended July 4, 2026:

(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate						Total
Restructuring, exit, and impairment activities:
Employee termination and other benefits			$	—					$	—					$	0.2					$	2.9					$	2.5					$	5.6
Asset-related			—						—						—						3.9						—						3.9
Professional and other third-party fees			—						—						—						2.0						0.3						2.3
Total restructuring, exit, and impairment charges			$	—					$	—					$	0.2					$	8.8					$	2.8					$	11.8
Total cash payments for restructuring, exit and impairment charges			$	—					$	—					$	2.4					$	6.5					$	0.3					$	9.2
Accrued charges at end of the period			$	0.5					$	0.1					$	0.7					$	8.9					$	2.8					$	13.0

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The following table is a summary of these expenses for the six months ended June 28, 2025:

(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate						Total
Restructuring, exit, and impairment activities:
Employee termination and other benefits			$	1.2					$	0.4					$	5.1					$	1.3					$	0.3					$	8.3
Asset-related			—						—						0.4						—						—						0.4
Professional and other third-party fees			—						—						0.4						—						—						0.4
Total restructuring, exit, and impairment charges			$	1.2					$	0.4					$	5.9					$	1.3					$	0.3					$	9.1
Total cash payments for restructuring, exit and impairment charges			$	1.8					$	0.9					$	3.4					$	2.4					$	0.9					$	9.4
Accrued charges at end of the period			$	0.8					$	0.2					$	3.6					$	0.9					$	0.3					$	5.8

2026 Acquisition

On April 16, 2026, the Company acquired another Freedom Boat Club franchise operation and territory across Greater Boston, Cape Cod and surrounding areas to further expand Freedom Boat Club's growing corporate club portfolio in the Northeast. The transaction also includes a maintenance operations center and dealership, strengthening Freedom's regional maintenance and fleet resale capabilities to support continued growth. The acquisition is included as part of the Company's Boat segment.

The Company paid net cash consideration of $28.2 million for the acquisition and total deferred consideration of $7.7 million due one year from the acquisition date. The opening balance sheet, which is preliminary and subject to change in the measurement period as the Company finalizes the purchase price allocation and fair value estimates, includes $18.6 million of goodwill and $2.7 million of customer relationships. The amount assigned to customer relationships will be amortized over the estimated useful life of 10 years. Transaction costs associated with the acquisition were not material to the Company's consolidated results of operations. The acquisition is not material to the Company's net sales, results of operations, or total assets during any period presented. Accordingly, the Company's consolidated results of operations do not differ materially from historical performance as a result of the acquisition, and pro forma results for prior periods are not presented.

The Company operates globally with manufacturing and sales facilities around the world. Due to the Company’s global operations, the Company engages in activities involving both financial and market risks. The Company utilizes normal operating and financing activities, along with derivative financial instruments, to minimize these risks. See Note 12 in the Notes to Consolidated Financial Statements in the 2025 Form 10-K for further details regarding the Company's financial instruments and hedging policies.

The following table summarizes the notional values of the Company's derivative instruments as of July 4, 2026, December 31, 2025, and June 28, 2025:

(in millions)						Notional Value
Instruments						July 4, 2026						December 31, 2025						June 28, 2025
Cross-currency swaps						$	500.0					$	500.0					$	500.0
Commodity contracts (A)(B)						40.2						38.5						37.8
Foreign exchange contracts (B)(C)						653.9						706.1						715.3

(A) Commodity contracts outstanding as of July 4, 2026 mature through 2027.

(B) The amount of gain or loss that is expected to be reclassified from Accumulated other comprehensive loss to earnings in the next twelve months is immaterial.

(C) Forward contracts outstanding as of July 4, 2026 mature through 2028 and mainly relate to the Euro, Australian dollar, Canadian dollar, and Mexican peso.

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As of July 4, 2026, December 31, 2025, and June 28, 2025, the fair values of the Company’s derivative instruments were:

(in millions)						Fair Value
Asset Derivatives						July 4, 2026						December 31, 2025						June 28, 2025
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts						$	10.0					$	4.8					$	4.8
Commodity contracts						5.9						7.9						5.3
Total						$	15.9					$	12.7					$	10.1
Derivatives Designated as Net Investment Hedges
Cross-currency swaps						$	—					$	—					$	0.1
Other Hedging Activity
Foreign exchange contracts						$	0.6					$	0.6					$	1.6
Liability Derivatives
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts						$	6.4					$	11.9					$	17.1
Commodity contracts						0.6						0.1						—
Total						$	7.0					$	12.0					$	17.1
Derivatives Designated as Net Investment Hedges
Cross-currency swaps						$	40.3					$	45.5					$	45.5
Other Hedging Activity
Foreign exchange contracts						$	2.5					$	0.7					$	1.4

As of July 4, 2026, December 31, 2025, and June 28, 2025, asset derivatives are included within Prepaid expenses and other and Other long-term assets, and liability derivatives are included within Accrued expenses and Other long-term liabilities in the Condensed Consolidated Balance Sheets.

The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 4, 2026 and June 28, 2025 is shown in the tables below.

The amount of gain (loss) on derivatives recognized in Accumulated other comprehensive loss was as follows:

(in millions)						Three Months Ended												Six Months Ended
Derivatives Designated as Cash Flow Hedging Instruments						July 4, 2026						June 28, 2025						July 4, 2026						June 28, 2025
Foreign exchange contracts						$	1.9					$	(16.3)					$	6.5					$	(21.3)
Commodity contracts						(0.6)						2.9						5.6						6.1
Total						$	1.3					$	(13.4)					$	12.1					$	(15.2)
Derivatives Designated as Net Investment Hedging Instruments
Cross-currency swaps						$	(2.8)					$	(33.1)					$	5.2					$	(45.5)

The amount of gain (loss) reclassified from Accumulated other comprehensive loss into earnings was as follows:

(in millions)																								Three Months Ended												Six Months Ended
Derivatives Designated as Cash Flow Hedging Instruments						Location of Gain (Loss)																		July 4, 2026						June 28, 2025						July 4, 2026						June 28, 2025
Interest rate contracts						Interest expense																		$	0.1					$	0.1					$	0.1					$	0.1
Foreign exchange contracts						Cost of sales																		(2.8)						0.8						(5.2)						2.5
Commodity contracts						Cost of sales																		4.1						0.6						7.2						1.1
Total																								$	1.4					$	1.5					$	2.1					$	3.7

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The amount of gain (loss) on derivatives recognized directly into earnings was as follows:

(in millions)																								Three Months Ended												Six Months Ended
Other Hedging Activity						Location of Gain (Loss)																		July 4, 2026						June 28, 2025						July 4, 2026						June 28, 2025
Foreign exchange contracts						Cost of sales																		$	(0.2)					$	(6.5)					$	(1.7)					$	(11.2)
Foreign exchange contracts						Other expense, net																		(2.6)						4.3						(6.4)						9.4
Total																								$	(2.8)					$	(2.2)					$	(8.1)					$	(1.8)

The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis:

												Fair Value
(in millions)						Fair Value Level						July 4, 2026						December 31, 2025						June 28, 2025
Cash equivalents						1						$	0.3					$	0.4					$	0.3
Short-term investments in marketable securities						1						0.8						0.8						0.8
Restricted cash						1						10.8						18.1						18.2
Derivative assets						2						16.5						13.3						11.8
Derivative liabilities						2						49.8						58.2						64.0
Deferred compensation						1						1.3						1.1						0.9
Deferred compensation						2						23.9						22.6						20.1
Liabilities measured at net asset value												19.1						15.6						14.0

Fair Value of Other Financial Instruments. The carrying values of the Company's short-term financial instruments, including cash and cash equivalents and accounts and notes receivable, approximate their fair values because of the short maturity of these instruments. The fair value of the Company's long-term debt, including current maturities, and short-term debt is determined using Level 1 and Level 2 inputs described in Note 6 to Notes to Consolidated Financial Statements in the 2025 Form 10-K. The fair value and carrying value of long-term debt, including current maturities, and short-term debt as of July 4, 2026, December 31, 2025, and June 28, 2025 was as follows:

Product Warranties

The following activity related to product warranty liabilities was recorded in Accrued expenses during the six months ended July 4, 2026 and June 28, 2025:

(in millions)			July 4, 2026						June 28, 2025
Balance at beginning of period			$	162.2					$	152.8
Payments			(49.7)						(42.3)
Provisions/additions for contracts issued/sold			60.5						55.6
Aggregate changes for preexisting warranties			(7.7)						0.7
Foreign currency translation			(0.8)						2.9
Other			(0.1)						(1.2)
Balance at end of period			$	164.4					$	168.5

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Extended Product Warranties

The following activity related to deferred revenue for extended product warranty contracts was recorded in Accrued expenses and Other long-term liabilities during the six months ended July 4, 2026 and June 28, 2025:

(in millions)			July 4, 2026						June 28, 2025
Balance at beginning of period			$	146.0					$	136.6
Extended warranty contracts sold			25.3						24.7
Revenue recognized on existing extended warranty contracts			(18.2)						(16.6)
Foreign currency translation			(0.3)						0.5
Other			(0.2)						—
Balance at end of period			$	152.6					$	145.2

Changes in the Company's goodwill during the six months ended July 4, 2026 and June 28, 2025, by segment, are summarized below:

(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Total
December 31, 2025			$	54.0					$	233.2					$	223.6					$	170.4					$	681.2
Acquisitions			—						—						—						18.6						18.6
Adjustments			—						—						(2.7)						(2.7)						(5.4)
July 4, 2026			$	54.0					$	233.2					$	220.9					$	186.3					$	694.4
December 31, 2024			$	50.8					$	232.6					$	513.4					$	169.3					$	966.1
Adjustments			3.0						0.7						15.8						0.5						20.0
June 28, 2025			$	53.8					$	233.3					$	529.2					$	169.8					$	986.1

Adjustments in both periods include the effect of foreign currency translation on goodwill denominated in currencies other than the U.S. dollar. The accumulated impairment loss on Navico Group goodwill was $385.8 million as of July 4, 2026 and December 31, 2025, and $80.0 million as of June 28, 2025, respectively.

The Company's intangible assets, included within Other intangibles, net on the Condensed Consolidated Balance Sheets as of July 4, 2026, December 31, 2025, and June 28, 2025, are summarized by intangible asset type below:

			July 4, 2026												December 31, 2025												June 28, 2025
(in millions)			Gross Amount						Accumulated Amortization						Gross Amount						Accumulated Amortization						Gross Amount						Accumulated Amortization
Intangible assets:
Customer relationships			$	909.7					$	(540.4)					$	908.1					$	(518.1)					$	917.3					$	(499.0)
Trade names			295.8						—						295.2						—						305.7						—
Developed technology			167.6						(52.8)						167.4						(47.1)						167.2						(41.3)
Other			147.8						(98.8)						138.0						(88.7)						127.7						(78.2)
Total			$	1,520.9					$	(692.0)					$	1,508.7					$	(653.9)					$	1,517.9					$	(618.5)

Other intangible assets primarily consist of software, patents, and franchise agreements. Gross amounts and related accumulated amortization amounts include adjustments related to the impact of foreign currency translation. Aggregate amortization expense for intangibles was $19.3 million and $38.8 million for the three and six months ended July 4, 2026, respectively. Aggregate amortization expense for intangibles was $20.1 million and $39.3 million for the three and six months ended June 28, 2025, respectively.

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The Company tests its intangible assets for impairment during the fourth quarter of each year, or whenever a change in events and circumstances (triggering event) occurs that indicates the fair value of intangible assets may be below their carrying values. The Company did not record any impairment charges for the six months ended July 4, 2026 or June 28, 2025.

Information about the operations of Brunswick's reportable and geographic segments is set forth below:

			Three Months Ended July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate/Other						Total
Net sales (A)			$	574.1					$	366.1					$	193.5					$	424.1					$	—					$	1,557.8
Cost of sales (B)			421.2						245.8						107.3						349.1						—						1,123.4
Operating expenses (C)			81.7						34.7						73.0						59.7						55.9						305.0
Operating earnings			$	71.2					$	85.6					$	13.2					$	15.3					$	(55.9)					$	129.4

(A) Net sales include $69.9 million, $1.8 million, $22.3 million, and $0.3 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.

(B) Includes $3.4 million of Cost of sales related restructuring, exit, and impairment charges.

(C) Includes $251.0 million of Selling, general, and administrative expense, $50.4 million of Research and development expense and $3.6 million of Restructuring, exit, and impairment charges.

			Three Months Ended June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate/Other						Total
Net sales (A)			$	525.0					$	335.9					$	180.7					$	405.4					$	—					$	1,447.0
Cost of sales (B)			391.6						233.0						116.5						338.3						—						1,079.4
Operating expenses (C)			67.6						31.2						71.8						56.0						37.7						264.3
Operating earnings			$	65.8					$	71.7					$	(7.6)					$	11.1					$	(37.7)					$	103.3

(A) Net sales include $73.2 million, $1.9 million, $21.6 million and $0.2 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.

(B) Includes $2.1 million of Cost of sales related Restructuring, exit, and impairment charges.

(C) Includes $216.6 million of Selling, general, and administrative expense, $41.8 million of Research and development expense and $5.9 million of Restructuring, exit, and impairment charges.

			Six Months Ended July 4, 2026
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate/Other						Total
Net sales (A)			$	1,070.4					$	654.2					$	393.3					$	818.0					$	—					$	2,935.9
Cost of sales (B)			804.3						453.8						232.1						671.0						—						2,161.2
Operating expenses (C)			160.5						69.2						142.9						125.2						97.2						595.0
Operating earnings			$	105.6					$	131.2					$	18.3					$	21.8					$	(97.2)					$	179.7

(A) Net sales include $144.9 million, $3.5 million, $46.0 million, and $1.1 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.

(B) Includes $6.7 million of Cost of sales related restructuring, exit, and impairment charges.

(C) Includes $493.2 million of Selling, general, and administrative expense, $96.7 million of Research and development expense and $5.1 million of Restructuring, exit, and impairment charges.

			Six Months Ended June 28, 2025
(in millions)			Propulsion						Engine P&A						Navico Group						Boat						Corporate/Other						Total
Net sales (A)			$	938.7					$	588.8					$	364.2					$	777.1					$	—					$	2,668.8
Cost of sales (B)			699.5						418.3						233.2						647.0						—						1,998.0
Operating expenses (C)			127.3						59.7						141.4						111.3						71.5						511.2
Operating earnings			$	111.9					$	110.8					$	(10.4)					$	18.8					$	(71.5)					$	159.6

(A) Net sales include $146.5 million, $4.3 million, $46.3 million and $0.6 million of segment eliminations for the Propulsion, Engine P&A, Navico Group and Boat reportable segments, respectively.

(B) Includes $2.8 million of Cost of sales related Restructuring, exit, and impairment charges.

(C) Includes $424.6 million of Selling, general, and administrative expense, $80.3 million of Research and development expense and $6.3 million of Restructuring, exit, and impairment charges.

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			Depreciation
			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026									June 28, 2025						July 4, 2026						June 28, 2025
Propulsion			$	29.4								$	30.8					$	60.2					$	60.6
Engine P&A			4.2									4.1						8.5						8.1
Navico Group			2.7									3.2						5.6						5.9
Boat			16.7									13.7						32.8						26.9
Corporate/Other			1.3									1.2						2.6						2.4
Total			$	54.3								$	53.0					$	109.7					$	103.9

			Amortization
			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026									June 28, 2025						July 4, 2026						June 28, 2025
Propulsion			$	1.3								$	2.1					$	2.8					$	4.0
Engine P&A			0.4									0.3						0.6						0.5
Navico Group			14.6									15.1						29.5						29.6
Boat			1.5									1.5						3.0						3.0
Corporate/Other			1.5									1.1						2.9						2.2
Total			$	19.3								$	20.1					$	38.8					$	39.3

			Total Assets
(in millions)			July 4, 2026						December 31, 2025						June 28, 2025
Propulsion			$	1,440.0					$	1,381.0					$	1,469.7
Engine P&A			895.6						861.3						886.7
Navico Group			1,481.0						1,524.4						1,875.6
Boat			946.2						893.9						902.1
Corporate/Other			742.4						651.6						660.2
Total			$	5,505.2					$	5,312.2					$	5,794.3

			Capital Expenditures
			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026									June 28, 2025						July 4, 2026						June 28, 2025
Propulsion			$	16.8								$	21.4					$	42.5					$	36.6
Engine P&A			2.6									4.0						5.9						6.2
Navico Group			3.5									4.9						6.5						7.4
Boat			17.0									13.4						37.9						29.3
Corporate/Other			1.5									1.2						5.8						3.1
Total			$	41.4								$	44.9					$	98.6					$	82.6

			Research & Development Expense
			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026									June 28, 2025						July 4, 2026						June 28, 2025
Propulsion			$	27.5								$	21.4					$	51.9					$	39.9
Engine P&A			0.1									0.3						0.4						0.7
Navico Group			13.8									11.6						26.8						23.0
Boat			7.9									7.5						15.4						14.7
Corporate/Other			1.1									1.0						2.2						2.0
Total			$	50.4								$	41.8					$	96.7					$	80.3

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			Net Sales
			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026						June 28, 2025						July 4, 2026						June 28, 2025
United States			$	1,035.0					$	976.4					$	1,929.8					$	1,794.5
International			522.8						470.6						1,006.1						874.3
Total			$	1,557.8					$	1,447.0					$	2,935.9					$	2,668.8

			Net Property
(in millions)			July 4, 2026						December 31, 2025						June 28, 2025
United States			$	1,092.1					$	1,097.9					$	1,128.5
International			107.4						109.9						110.0
Total			$	1,199.5					$	1,207.8					$	1,238.5

Note 10 – Comprehensive Income

Changes in the components of Comprehensive income, net of tax, for the three and six months ended July 4, 2026 and June 28, 2025 are as follows:

			Three Months Ended												Six Months Ended
(in millions)			July 4, 2026						June 28, 2025						July 4, 2026						June 28, 2025
Net earnings			$	109.8					$	59.3					$	130.8					$	79.5
Other comprehensive income (loss):
Foreign currency cumulative translation adjustments			(4.3)						45.5						(12.7)						70.9
Net change in unamortized prior service credits			(0.1)						(0.2)						(0.3)						(0.3)
Net change in unamortized actuarial losses			(0.2)						(0.1)						(0.3)						(0.3)
Net change in unrealized derivative (losses) gains			(2.2)						(36.2)						11.5						(48.6)
Total other comprehensive (loss) income			(6.8)						9.0						(1.8)						21.7
Comprehensive income			$	103.0					$	68.3					$	129.0					$	101.2

The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the three months ended July 4, 2026:

(in millions)			Foreign currency translation						Prior service credits						Net actuarial gains												Unrealized investment gains						Net derivative gains						Total
Beginning balance			$	(33.0)					$	(8.6)					$	11.7											$	0.2					$	12.0					$	(17.7)
Other comprehensive income (loss) before reclassifications (A)			(4.3)						—						—												—						(1.4)						(5.7)
Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C)			—						(0.1)						(0.2)												—						(0.8)						(1.1)
Net other comprehensive income (loss)			(4.3)						(0.1)						(0.2)												—						(2.2)						(6.8)
Ending balance			$	(37.3)					$	(8.7)					$	11.5											$	0.2					$	9.8					$	(24.5)

(A) The tax effect for the three months ended July 4, 2026 was $0.5 million for foreign currency translation and $0.1 million for derivatives.

(B) The tax effect for the three months ended July 4, 2026 was $0.6 million for derivatives.

(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the three months ended July 4, 2026. Refer to Note 5 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.

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The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the three months ended June 28, 2025:

(in millions)			Foreign currency translation						Prior service credits						Net actuarial gains												Unrealized investment gains						Net derivative gains (losses)						Total
Beginning balance			$	(71.5)					$	(8.0)					$	10.3											$	0.2					$	28.3					$	(40.7)
Other comprehensive income (loss) before reclassifications (A)			45.5						—						—												—						(35.1)						10.4
Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C)			—						(0.2)						(0.1)												—						(1.1)						(1.4)
Net other comprehensive income (loss)			45.5						(0.2)						(0.1)												—						(36.2)						9.0
Ending balance			$	(26.0)					$	(8.2)					$	10.2											$	0.2					$	(7.9)					$	(31.7)

(A) The tax effect for the three months ended June 28, 2025 was $(8.2) million for foreign currency translation and $11.4 million for derivatives.

(B) The tax effect for the three months ended June 28, 2025 was $0.4 million for derivatives.

(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the three months ended June 28, 2025. Refer to Note 5 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.

The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the six months ended July 4, 2026:

(in millions)			Foreign currency translation						Prior service credits						Net actuarial gains												Unrealized investment gains						Net derivative gains						Total
Beginning balance			$	(24.6)					$	(8.4)					$	11.8											$	0.2					$	(1.7)					$	(22.7)
Other comprehensive income (loss) before reclassifications (A)			(12.7)						—						—												—						12.7						—
Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C)			—						(0.3)						(0.3)												—						(1.2)						(1.8)
Net other comprehensive income (loss)			(12.7)						(0.3)						(0.3)												—						11.5						(1.8)
Ending balance			$	(37.3)					$	(8.7)					$	11.5											$	0.2					$	9.8					$	(24.5)

(A) The tax effect for the six months ended July 4, 2026 was $0.9 million for foreign currency translation and $(4.6) million for derivatives.

(B) The tax effect for the six months ended July 4, 2026 was $0.9 million for derivatives.

(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the six months ended July 4, 2026. Refer to Note 5 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.

The following table presents the changes in Accumulated other comprehensive loss, net of tax, by component for the six months ended June 28, 2025:

(in millions)			Foreign currency translation						Prior service credits						Net actuarial gains						Unrealized investment gains						Net derivative gains (losses)						Total
Beginning balance			$	(96.9)					$	(7.9)					$	10.5					$	0.2					$	40.7					$	(53.4)
Other comprehensive income (loss) before reclassifications (A)			70.9						—						—						—						(45.8)						25.1
Amounts reclassified from Accumulated other comprehensive loss, net of tax (B)(C)			—						(0.3)						(0.3)						—						(2.8)						(3.4)
Net other comprehensive income (loss)			70.9						(0.3)						(0.3)						—						(48.6)						21.7
Ending balance			$	(26.0)					$	(8.2)					$	10.2					$	0.2					$	(7.9)					$	(31.7)

(A) The tax effect for the six months ended June 28, 2025 was $(11.8) million for foreign currency translation and $14.9 million for derivatives.

(B) The tax effect for the six months ended June 28, 2025 was $0.9 million for derivatives.

(C) The reclassification adjustments from Accumulated other comprehensive loss and associated tax effects related to defined benefit items were not material for the six months ended June 28, 2025. Refer to Note 5 – Financial Instruments for the reclassification adjustments from Accumulated other comprehensive loss, net of tax related to derivatives.

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